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A reflection of changing priorities? The reallocative impact of priority‐based budgeting in US municipalities

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  • David Mitchell
  • Sarah E. Larson
  • Terry Henley
  • Auria Spranger
  • Suzette Myser

Abstract

Implemented in over 200 North American local governments, priority‐based budgeting (PBB) reflects a contemporary attempt to systematically determine and implement desired budgetary reallocation. The study utilizes a lagged dependent variable alternative to difference in difference analysis to examine reallocation patterns for 32 early‐adopting US cities before and after PBB implementation. The findings suggest that PBB fulfills its promise, as low‐priority departmental budgetary allocations shrink by 2%–3% following PBB implementation. These PBB early adopters offer evidence that PBB can effectively transcend the marginal, transactional nature of incremental budgeting practices; however, its effectiveness must be weighed against potentially substantial costs of implementation.

Suggested Citation

  • David Mitchell & Sarah E. Larson & Terry Henley & Auria Spranger & Suzette Myser, 2022. "A reflection of changing priorities? The reallocative impact of priority‐based budgeting in US municipalities," Public Budgeting & Finance, Wiley Blackwell, vol. 42(3), pages 3-22, September.
    • Handle: RePEc:bla:pbudge:v:42:y:2022:i:3:p:3-22
    DOI: 10.1111/pbaf.12310
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    References listed on IDEAS

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    2. Steven Maser, 1985. "Demographic factors affecting constitutional decisions: the case of municipal charters," Public Choice, Springer, vol. 47(1), pages 121-162, January.
    3. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    4. Danziger, James N., 1976. "Assessing Incrementalism in British Municipal Budgeting," British Journal of Political Science, Cambridge University Press, vol. 6(3), pages 335-350, July.
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